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1/16/2013 2:00PM

Dell May Sell Shares at $13-$14 Each in Buyout

Silver Lake Partners was in talks Tuesday with Dell for a leveraged buyout at around $13 to $14 a share; Major U.S. banks are pressing for government action to block Iranian cyberattacks; Can Facebook's 'Graph Search' find you a date? Photo: Dell.

This transcript has been automatically generated and may not be 100% accurate.

... I ... ball views on the towel I am talks they ... tryst the writings thirteen to fourteen dollars a share ... Sanchez down in Panama could amount to just below thirteen but that the month but the sun will abound wall ... right here right now on Digits good afternoon and welcome I'm Simon Constable with the news on this month that the noise ... pollster John thank you so much ... aam ... tells about this ... so we should start by saying this is often the fluid it there's no deal yet there's no even come agreement that we knew we know of yet ... so so things are moving around alot but oh well we learned last night as the Silver Lake is still a process that ... big private equity firm ... and they're looking to pay around thirteen to fourteen dollars a share for Dell ... since it is when the market is displayed on a tear it down ... essentially Kennedy and the couple wrinkles ... silver Lake is looking for about two billion dollars in equity I ... in this deal would value at between twenty two and twenty five billion dollars Delta is out now the company has a few wrinkles said that though the company already has some cash right which is which is of the season to get it yet ... but they need a lot more money and Michael Dell solons quite a bit of a kind write exactly so kind of ... them after work so here essentially ... Silver Lake in the TV ... side puts into Britain was out in front of me ... Michael Dell himself his stake is worth around three point eight billion ... dollar goes and ... any at about fifteen billion dollars in debt ... and ... it sounds like they'll take to catch on Dell's books and use that to ... me ... so that's a lot of money to raise fifteen Billy inbox is a heck of a long running rate we thought of as before it of a lot of debt ... the market is not very excited about it ... there are reports that ... um ... people think that that will be pre well received ... there are questions over whether that's Richard not for the first day this came out ... Dell bonds kind of went to the roof so what one other things with that of the debt market is the path to find financing who need this and this was most likely would not be high grade who very very out that the high-end of high grade this is not in the triple ... A rated debt to know him because the levy me jumped ... up Ireland John Nadel is pretty highly rated which is kind of what makes this a little bit unusual ... on ... an income of the moves and instead but ... sadly it's it's going there to pay a pretty hefty ... it is the isthe is that this is still cold but when we hearing numbers being thrown on that ... we don't believe that that getting pretty serious about this right yet and that's the point of this is this is I think much ... more serious than we thought earlier the week I read a mean you are in the weekend ... their China deals on this past possible given what's happened to the stock which is all of the place ... and I think ... likely the bankers on the private Acree site here ... to ... to disappoint iShares going down really didn't know what great things why now is that the bomb market is reasonably healthy for fourth thats an inground of small investors analog Devices of buying a put that on that so if they want to take advantage of that now would be the time like this week next week write exactly that the market is ... just ... hungry for for any deal given what's going on Treasurys and an interest rate so ... yet it is to have a chance at Albion Rovers at ... up to Woolworths also great stuff as always though that Boeing will Mattel mall man story above is to ... dot com ... while big banks seeking help from the government of a ... cyber attacks from ear and what more on that in thirty seconds ... the Wall Street Journal special coverage of the inauguration of President Barack Obama ... live from Washington ... Monday January twenty first ... of Lehman's key ally ... what the back to Digits Eric the yes J live I'm Simon console ... big banks are seeking help from the government to fend off a cyber attacks from overseas ... with the story with washable Gorman she joins us now from Washington DC ... I'm sure von aam ... tells about this of this the US led the security is very involved with a bank ... well it certainly is an app for more than a year in out there has then Annie as head of the Opel cyber campaign going on against ... American banks as well as Hasen bullpen and some natural gas and oil companies in the Persian Gulf and ... U S defense officials say that ... if the government of Iran is behind these attacks and so ... as the attacks have accelerated in the fall and now into this year ... that things are are are are watching you know lots and lots of money go out the door into the job answer or have now spent millions trying to defend against these things and so ... they're saying this ANF is enough they really need the government to help defend them against the attacks either ... of the start walking them or go after the guys who were were for the tree ... now in open banks that typically known to have great contact operations like enough high award commission even though the high and the ... the best program is the best security people because they have all a lot of money ALM so what what will the government be Obel to do that the bank's common reply for themselves ... well ... I had is the most comprehensive picture of how these attacks are taking place ... instead of what what is that what what the indicators are that the attacks are about to take place and Ivy are in a ... little bit better positioned to deal with a concrete and simply in awe and certainly if anybody is going to ... actually tried to attack back that would have to be the U S government says it would be illegal for eBay to do that but ... he did sort of something that would be very talkative like that the banks ... think that the US government is just in a better position to comprehensively deal with the campaign because right now thanks to just having to deal one-on-one with their Internet providers can't ... you just end up with and about a day pass uber spots them and this this income a Laming of course anyone with them money in a bank aam and I mean guys that we will will the money in banks and that that's a worry ... now the irony it seems to me here is that banks tend not to like government to ... involve mental as they want what interference with that business and yet now that the seeking help ... yet and I what I spoke privately with people on the U S government side they were very quick to point out ... that the banks I well ... technically the financial services industry ... was a big forest bed opposed this cybersecurity legislation that the White House was promoted last year and the eventually failed ... so I you know when when you speak with I've felt soo who represent the banking perspective they say well ... you know that was that Apple cider legislation today was about having the government ... require based in the and and other private sector entities to meet certain standards for is here we just want the government to take action on this particular campaign and said there they differentiate but also the government's ITC in this that that that I don't know that this is ironic on a bit ticked off in the government ... I has a little bit of frustration that officially they say they they think that this is a serious problem and they ... are dealing with it and a very deliberative fast and there have that high level White House meetings where they discuss this that they haven't decided exactly how it is that the U S government wants to respond so far ... they have been working with the bank's fairly extensively but it's mainly that in terms of information sharing and so what some of the speed to lead the regional banks are asking for is for ... bed that government actually take actions that would ... mitigate these attacks in in some form ... okay I will will will always find one on top of the story thank you Brian much will go on and we really appreciate the idea ... then you can read mall man on the vs in J dot com what's installed for e Bay awnings ... Monday report after the bell William L a quick preview ... in thirty seconds ... the Wall Street Journal special coverage of the inauguration of President Barack Obama ... line from Washington ... Monday January twenty first ... we must realize ... welcome back to Digits Eric the yes J live I'm Simon Constable what is in store for a fee based earnings with the report after the battle of the stock's up about a fifth of want this and now ... to get a sneak peek week Spencer Jacob he is the head of the Tape columnist can have the will Street tunnel and to thank you for coming on the show that yes ... ALM ... the bank ... record quite a company of the company will commence but ... in a lot of people this time last year wonderous maybe they they ... did really did seize the growth potential the thought that was ... somewhat kept out they've discovered this guy which was a bit of a black eye even though they made money on it ... they didn't see how much more growth was in the air in there they're core auction business and that they're looking foolish now the stock is up seventy three percent ... over the past year down the stairs and as the chart and is actually a phenomenon in its bid them and no real pullbacks disliked than often Omani people about to become very well ... you would ... be up ... on so so so some them Obama is going to be on time because of the future you bet right ... they think so and I mean that that is likely to be you know you think of it and it was one of the day early ... e-commerce pointed ears and what they ... got into was auctions was a very scalable business ... and you still think who does that mean you don't think you so don't go there and and be gone ... surrounded by the monks know as are out there weeding for the boss or something now don't allow you to donate off ... this enraged on to my house ... you know that the thing is that there ... it's ... just as much ... care is just much potential for them ... as as everyone else as it does for Amazon as it goes for anyone else involved in e-commerce and that's that without making a big push ... and ... because this especially the nature of their business where you have these these options we are regularly notified the tone for someone on on the go ... um ... having that that mobile connection having a good mobile platform is is particularly important for them ... now when when the county does report earnings and investors like to nominees to the earnings they also like to see the management Ford's abound that business paywall managers thinking what you will be looking for ... aam and that discussion ... well they really getting their fingers that there are fewer e-commerce player ... for example ... a little over a year ago the governor the final chunk ... of stock ... and at the same timetable ... on a company that specializes in helping other companies' other very large companies that you've heard of ... manage their back office operations ... but ... another more porta way that they have their fingers in e-commerce is through payments through PayPal ... and to the financing of payments to me later ... and that that is that they're actually becoming a of the small of consumer finance company on the side is a very lucrative business for them in the two have charge offs there are people who don't pay that there's fraud and isn't that but it's ... you know that when it comes out on the wash to making ... quite a bit of money and that and just one piece of this just on the PC does matter back to look at the of the marketplace business which includes options ... and ... be ... buying the business of buying a bike down things that they that they sell um you ... that was probably two thirds of the business back in two thousand and nine ... by next year should be less than half ... so that the payments businesses ... and the e-commerce consulting businesses are growing a lot ... a lot more quickly ... one thing I have medicine ninety days it's still going beautiful sights I mean it you go on and you can find stuff but he's not I'm it's not called the PUC of songs I sometimes think oh one uses it was just lovely ... kitchen and with an upgrade resigned to become these into an electric rates as well with the flightless the site was I was that I this is the key is drawn to the bayonets like that everyday so that they they keep their were to look it looks like I mean I look at the beta sometimes I think um like come on and fifty six K dial up modem looking at it back in ... the nineteen ninety seven it looks not very different today read awesome man is my quest item and that's just the spot or fail to God that is what underlies the site is the isthe is a lot more complex obviously then ... the met ... coal which else they only show with others ... in the afternoon show which of Ripoll the zoning thank you Brian much I did check up ... at a tackle that in Hackney ... Wall Street delphic eyes on in the paper ... regulate ... one can Facebook such class and ... then you ain't dates ... Quentin for trial was that tell us that the camp and the results of four MarketWatch Tech win ... Canada new things ... the climb and how good are you would think that ... aam on okay with Ian Samantha values to be a character is running pretty Esprit simple in a note that the clinic crush crush my dreams that so I'm you hear this the somebody forever they hope to get to those who doubt this NEW ... crop search the village yesterday in part due to this and we've been saying for awhile which is that ... Facebook ... is going to move from ... beyond not only being in place to connect old friends but also ... does all of this ... information is like a treasure trove of management people share willingly and ... some limits to ... save and thirteen estimates for the can down the next logical step is to turn it into Mr. Hartenstein into dating site ... stating industries worth ... nearly ... turned depending on us was one but two billion ... dollars the year in the US to take market in terms of ... the oil reserves will he be there when would you be using the certificates I was the way make up ... a minute you might ... otherwise known as guilty you about about it ... well because on the personalization side ... during these big cumbersome question or as pantheon of who you talking to ... pour out is that it's a question and on on Facebook but it is you don't really know me talking to you could be talking to some nice tax ... well not like me because you know you can search friends of friends is a man who ... was this a guess their friends of friends who are single ... so there's that extra bit of ... assurance that the people you might connect with our somehow within your circles ... of friends or circles and circles so the stock down on this this is what I give you a little bit aam but if you even if you do that yet of those more comfortably eyes ... and so this last one thing okay it's ... okay and you think people wanted to know the thing people want one A key plan as a separate from the rest of the lifeline think they still want people to go to Facebook or Yum innovative yet writes ... I think ... of people spend more time in its ... guns ... it generally ... it's days you know it's a site where ... I can see I'm a lot of ... people during the noon on Franz them but I have to say that you know that I've been sort of prehistoric this in the Morna third of divorce filings ... I in the in ... in the UK mentions ... faced the word Facebook so it seems to be ... a will but more ... on this on this with ... the picking up the prices at the moment that this will be there and that meant I connected with the people already using it as a stay inside ... we've added already has a problem write them on some aren't but I think this is a really good way of ... May harnessing not ... desire season dates so how how would this work on the financial side the full Facebook amendment Vestas woman to make money aam right what is this widening Facebook the ... full month but this is for it ... right so will the sudden ever ties ING ... I recently re testing these messages chickens charge somebody to send a message out of your ... friends network ... so ... that's the kind of ... pointed this out before this the kind of premium service that Asian so I would use ... Jude for subscribers pay more money to ... having access to more pictures to my messages ... so there are lots of ways ensure they can look on ... new charging more he's eventually hope to ... get stuff ... that people to date through Facebook ... come by to tell us tells all about here on digits ... well today said Google doodle is really funny check this out to nominate somebody says Sam Boni nominates of ... sunshine Denis O'Brien hundred while both a friend is somebody that with that little machine that is I'm bony whites using the shame ... I'm in the August AP Video demo would also replace post and use your arrow keys ... to move around the sun pony after the status of messed up the icy but messed up the ice that ... I'm and that the blog over the money coming on as head of the gasoline that can ... and do not cheat steal or cheat do not cheat by using the mouse we have some people that I asked Wible ... who would do that with this but the fact ... that a White House from what I was out of the now allows on that tonight ... looks like a lot of fun ... in the meantime that's it that's